dc.contributor.author | Lishenga, Lisiolo | |
dc.date.accessioned | 2013-03-15T06:05:22Z | |
dc.date.issued | 2012 | |
dc.identifier.uri | http://hdl.handle.net/11295/13936 | |
dc.description.abstract | We studied the relationship between board activity and a firm‟s existing corporate governance structures
and mechanisms. The association between board activity and corporate governance variables is complex
and multi-faceted. The two testable propositions in the study were that: an association exists between board
activity and an array of corporate governance mechanisms; and that board activity adds value to the firm
and by inference to shareholders. Board activity, measured by the frequency of board meetings, had a
negative but lagged relationship with financial performance, a negative relationship with the size of the
board, a negative relationship with insider ownership, a positive relationship with both the number of block
holders and the number of other directorships held by directors, and insignificant relationships to both
board independence and the number of committees. This confirms that other ownership and board
composition characteristics could substitute board activity. The analysis of the interaction between board
meetings frequency and the value of the firm is lagged but positive, implying relatively low market
valuations triggers intervention of the board through frequent meetings that apparently impacts positively
on firm value | en |
dc.language.iso | en | en |
dc.subject | Board, | en |
dc.subject | Board activity, | en |
dc.subject | corporate governance, | en |
dc.subject | Governance mechanisms, | en |
dc.subject | Firm value. | en |
dc.title | Empirical analysis of the relationship between board activity, corporate governance mechanisms, and firm value | en |
dc.type | Article | en |
local.embargo.terms | 6 months | en |
local.embargo.lift | 2013-09-11T06:05:22Z | |
local.publisher | Lecturer, Department of Finance and Accounting, University of Nairobi | en |